Michael Pakko
Arkansas’ seasonally adjusted unemployment rate dropped three-tenths of a percentage point from December to 4.4 percent in January, according to a report Monday by the Arkansas Department of Workforce Services.
The reported showed the state’s civilian labor force up by 6,146 — the result of 10,142 more employed and 3,996 fewer unemployed Arkansans.
More: Download the complete report.
“At 4.4 percent, the unemployment rate is certainly at or maybe even below what we consider to stay for the long run,” said Michael Pakko, chief economist and state forecaster at the Institute for Economic Advancement at University of Arkansas at Little Rock. “While we may see further declines in the next few months — there may be even a slight up-creep — but I wouldn’t expect any significant changes.”
Over the same month-to-month period, the U.S. jobless rate declined one-tenth of a percentage point to 4.9 percent in January.
Nonfarm payroll jobs in Arkansas dropped by 24,500 in January to total 1.2 million. Ten major industry sectors posted employment declines, including trade, transportation and utilities, which fell by 8,100. Losses throughout all three subsectors were largely attributed to the end of the holiday shopping season.
Government employment fell by 6,200, mostly related to the winter break at public schools and universities. Jobs in construction dropped by 2,700, due to seasonal declines and the completion of large-scale projects.
Professional and business services decreased by 2,100. Most of the loss occurred in administrative and support services, which includes employment agencies, the report said.
“I’m still optimistic about continuing improvements in construction employment,” Pakko said. “Other than that, I think it will be continuing trends from the past few years. Most of the growth is going to take place in the services sector, primarily in health and education.”
Since January 2015, Arkansas’ nonfarm payroll employment rose by 26,800. The economy added jobs in nine major industry sectors, with two down slightly. Trade, transportation and utilities posted the largest increase, up by 8,500 jobs.
Employment in professional and business services rose by 6,700, with gains reported in all three subsectors. Leisure and hospitality added 6,500 jobs, mostly in food services.
Employment in educational and health services increased by 4,900, with most of the growth in health care and social assistance. Mining and logging posted the largest loss, down by 1,700, due to economic conditions that include low oil prices.
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